February 7, 2001

GAS RATES GO DOWN FOR CUSTOMERS OF TWO INDIANA COMPANIES

Customers of two gas companies in Indiana will not see their prices rise as much as expected in February.

When the first quarter gas cost adjustment for Peoples and Midwest Gas was approved February 1, 2001, the IURC made a provision, which allows the companies to reduce rates if gas purchase costs were less than estimated. That was done to make sure, that in this volatile market, customers get the benefit of lower prices as quickly as possible. February 2, 2001 the companies made a request through their tariffs and the lower rates are now in effect.

Order approved GCA Factors 2nd revised factors % Decrease

PEOPLES $ 4.0786 / DTH $ 3.9068 / DTH 17%

Order approved GCA Factors 2nd revised factors % Decrease

MIDWEST $ 5.1036 / DTH $ 4.4546 / DTH 13%

	One year ago	Current	First revised GCA 68 (approved in Feb. 1st Order)	Second revised GCA 68 (filed per Commission's directive in Feb. 1st order
PEOPLES
5 DTH	$ 33.65	$ 44.30	$ 58.76	$ 54.75
10 DTH	$ 62.56	$ 83.88	$ 112.80	$ 104.78
15 DTH	$ 87.14	$ 119.11	$ 162.49	$ 150.46
20 DTH	$ 111.72	$ 154.34	$ 212.19	$ 196.15
25 DTH	$ 136.29	$ 189.58	$ 261.88	$ 241.83

MIDWEST
5 DTH	$ 35.75	$ 45.49	$ 60.80	$ 57.42
10 DTH	$ 62.30	$ 81.78	$ 112.39	$ 105.63
15 DTH	$ 87.34	$ 116.56	$ 162.48	$ 152.34
20 DTH	$ 112.38	$ 151.34	$ 212.56	$ 199.04
25 DTH	$ 137.42	$ 186.12	$ 262.65	$ 245.75

Peoples serves nearly 3,000 customers in Greene County, Indiana. Midwest Natural Gas serves nearly approximately 11,900 customers in Clark, Daviess, Knox, Jackson, Jennings, Scott, Washington and Greene Counties of Indiana.

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